Module -1

Introduction to HRD
MBA 3rd Semester HRD Study Notes
Module - 1 Introduction to HRD

1. Table of Contents
1. Table of Contents ..................................................................................................................................1
1. Meaning of Human Resource Development .........................................................................................2
2. Objectives of HRD .................................................................................................................................3
3. HRM vs HRD ..........................................................................................................................................4
4. Evolution of HRD ...................................................................................................................................5
5. Benefits of HRD .....................................................................................................................................9
6. Functions of HRD...................................................................................................................................9
7. Significance/Importance of HRD ........................................................................................................ 13
8. Role of HRD Professionals in Organization ........................................................................................ 14
9. Challenges of HRD .............................................................................................................................. 16
10. HRD Process Model/HRD Framework/Systematic Approach to T & D .......................................... 18
11. Strategic HRD ................................................................................................................................. 22
12. Pre-Placement and Placement....................................................................................................... 23
12.1. Pre-Placement ........................................................................................................................ 23
12.1. Placement .............................................................................................................................. 24
13. Question Bank ................................................................................................................................ 25

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Module - 1 Introduction to HRD

1. Meaning of Human Resource Development

Develop
Human Resource
ment HRD

 Human: Here it refers to employees in an organization, who work to increase the profit for an
organization.

 Resource (Human): Refers to the talents and energies of people who are available to an
organization as potential contributor to the creation and realisation of the organization’s
mission, vision, values and goals.

 Development: It is acquisition of capabilities that are needed to do the present job, or the
future expected job.

 Human Resource Development (HRD) is a process of developing skills, competencies,

knowledge and attitudes of people in an organization.

 It is the process of increasing the capabilities of HR through development.

 Definition of HRD: A set of systematic and planned activities designed by an Organization to

provide its members with necessary skills to meet current and future job demands.

 Human Resource Development (HRD) is the framework for helping employees develop their
personal and organizational skills, knowledge and abilities

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2. Objectives of HRD

Objectives of HRD areas follows

Identify Competency Develop Employee’s

Develop Motivation
Gaps Potential

Promote Team Facilitate

Enhance quality and
Building and Organisational
productivity
Collaboration Climate Effectiveness

1. Identify Competency Gaps: HRD aims to identify competency gaps of employees and train
them to perform present roles effectively and create conditions to help employees bridge
these gaps through development. The nature of jobs is constantly changing due to changes
in the environment, organisational goals, priorities, strategies, customer expectation,
technology, new opportunities, new challenges and new knowledge base. Such a change in
the nature of jobs requires continuous development of employee’s competencies to
perform the job well. HRD aims at constantly assessing the competency requirements of
different individuals to effectively perform the assigned jobs, and provide opportunities for
development of these competencies.
2. Develop Employee’s Potential: HRD also aims at preparing people for performing roles,
tasks or functions which they may be required to perform in the future as they go up on
orgnisational hierarchy or as the organisation taken-up new tasks through diversification,
expansions, and modernisation. HRD tries to develop the potential of employees for likely
future jobs/roles in the organisation.
3. Develop Motivation: Motivation development is also an aim of HRD. Motivation means the
desire to work or put in work effort. It is an involvement to the job and the commitment to
the organization. It is desire to make things happen. Without motivation employees are not
likely to give their best. Having technical human relations, and conceptual competencies is

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Module - 1 Introduction to HRD

not enough for effective performance on the job. A passion for working for the organisation
is required to be developed; a fire in belly is to be kindled.
4. Promote Team Building and Collaboration Climate: HRD also promotes team building and
collaborative climate. This requires building and enabling orgnisational culture – one in
which employees use their initiate, take risks, experiment, innovate and make things
happen.
5. Enhance quality and productivity: To evolve the human resource development system so
that the employees are provided equitable opportunities to move up in the organisation on
the basis of their performance and ability so as to enhance quality and productivity.
Organisations should ensure that responsibility for results is provided right from lower level
so that employees can develop a sense of independence and self-confidence.
6. Facilitate Organisational Effectiveness: To ensure that adequate number of persons with
sound industry background and experience both in generalist and specialist are available at
different operative and supervisory and managerial levels in order to facilitate orgnisational
effectiveness.

3. HRM vs HRD

BASIS FOR HRM HRD

COMPARISON
Meaning Human Resource Management
refers to the application of principles
of management to manage the
people working in the organization.
Human Resource Development
means a continuous development
function that intends to improve
the performance of people working
in the organization.

What is it? Management function. Subset of Human Resource

Management.

Function HR planning, recruiting and staffing, Training and development,

employee and labour relations, Organization development, Career
Compensation and benefits, development, performance
occupational health and safety management, and coaching

Objective To improve the performance of the To develop the skills, knowledge

employees. and competency of employees.

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Process HRM is a routine and administrative HRD is continuous process

process

Dependency Independent It has dependency on HRM

Concerned with HRM is concerned with recruitment, HRD is concerned with employee
rewards among others skills development.

Basis of Distinction Personnel Function HRD

1. Orientation Maintenance oriented Development oriented

2. Structure Independent Function Inter-dependent

3. Philosophy Reactive Function Pro-active Function

4. Responsibility Exclusive responsibility of Responsibility of all the

personnel department managers

5. Motivation Emphasis on monitory rewards Emphasis on higher order

needs

6. Outcomes Improved performance is the Better use of human

result of improved satisfaction
and morale
7. Aim Tries to improve efficiency of
people and administration
resources leads to improved
satisfaction and morale
Tries to develop the
organisation as a whole and
its culture

4. Evolution of HRD

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Global Perspective

Early Apprenticeship Training Program

 During 18th century in America small shops operated by skilled artisans, they produced
virtually all household goods, such as furniture, clothing & shoes.
 To meet a growing demand for their products craft shop owners had to employ additional
workers
 As there were no schools available to train the workers, so the shop keepers had to educate
& train their own workers.
 For little or no wages, these trainees or apprentices, learned the craft of their master,
usually working in the shop

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 Apprentices who mastered skills were considered “Yeomen”, & could leave their masters &
establish their own shops but due to little wages they could not put up shop.
 Later they formed “Yeomanaries” (early worker union) for negotiating higher wages and
better working conditions.

Early Vocational Training Programs

 De Witt Clinton, in 1809, founded the first recognized privately funded vocational school,
referred as manual school, in New York
 The purpose was to provide occupational training to unskilled young people who were
unemployed or had criminal records
 Manual schools grew in popularity, particularly in the Midwestern status
 It was a public solution to a social problem
Early Factory Schools
 Industrial Revolution during the late 1800s made machines to replace the hand tools of the
artisans
 They also created a significant demand for the engineers, machinists, and skilled mechanics
 The demand for skilled workers asked the factories to create mechanical and machinist
training programs, which were referred to as “factory schools”.

Early Training Programs for Semiskilled & Unskilled Workers

 Very few companies offered training programs for unskilled or semiskilled workers.
 The introduction of the Model T by Henry Ford in 1913. The Model T was the first car to be
mass-produced using an assembly line, in which production required only the training of
semiskilled workers to perform several tasks.
 Outbreak of World War I. To meet the huge demand for military equipment, many factories
that produced nonmilitary goods had to retool their machinery and retrain their workers,
including the unskilled workers to manufacture military items.

The Establishment of Training Profession

 World War II led to the establishment of new training programs within larger organizations
and unions.

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 The federal government established ”Training with Industry” (TWI) services to coordinate
training programs across defense – related industries
 Many defense related companies established their own training departments with
instructors trained by TWI
 In 1942, the American Society for Training Directors (ASTD) was established & formed some
standards within this emerging profession

Emergence of HRD
 During 1960’s & 70’s, professional trainers realized that their role extended beyond the
classroom training
 The move towards employee involvement in many organizations required trainers to coach
& counsel employees
 T & D therefore expanded to include interpersonal skills such as coaching, group process
facilitation & problem solving
 This additional emphasis on employee development inspired the ASTD to rename itself as
the American Society for Training and Development (ASTD).
 1980’s – coined the phrase human resource development as a focus of trainers
 Since 90’s efforts are made to strengthen the strategic role of HRD, i.e. how HRD links to &
supports the goals & objectives of organization

Indian Perspective: Emergence of HRD in India

 The concept of HRD was introduced in India by T V Rao. He is regarded as the father of HRD
in India. Larsen and Toubro was the pioneer in India to design and implement an integrated
HRD system in the 1970s. Slowly other companies also started establishing it.
 In 1974, the consultants studied the organisation and prepared a new integrated system
called Human Resource Development (HRD) System.
 Based on the recommendations of the approach paper, a very high level role was created at
the Board level to give a greater thrust to the new system. A separate HRD Department was
created. A high level internal team headed by a General Manager, monitored the progress

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of implementation of the new system initially, which was subsequently handed over to the
HRD Department.
 This pioneering work of Dr. Rao and Dr. Pareek lead later top the establishment of HRD
Departments in the State Bank of India and its Associates, and Bharat Earth Movers Limited
in Bangalore in 1976 and 1978.
 A study on analysis of HRD experiences of 14 organizations viz. Bank of Baroda, Crompton
Greaves, IOC, SAIL, SBI, State Bank of Patiala, Sundaram Fasteners, TVS Iyengar and Voltas
etc. reveals that
 The chief executive & the corporate teams of several of these organizations played an
active role in the implementation of HRD.
 Today, most of the larger public and private sector organization in India are using the
techniques and approaches of HRD to develop their workforce for the attainment of
organizational goals along with individual satisfaction and growth.

5. Benefits of HRD

1. HRD improves the capabilities of people. They become innovative and enterprising – ever
eager to take risk and get ahead. It improves the all-round growth of an employee.
Feedback and guidance from superior’s help employees grow continually and show
superior performance.
2. HRD improves team work. Employees become more open and trust each other. The
organisational climate, too, improves a lot.
3. HRD leads to greater organisational effectiveness. Appropriate employee-centred policies
help the organisation achieve its goals more efficiently.
4. Performance related rewords help employees realize the importance of utilizing their skills
fully in the service of organisational goals. The organization’s overall health and self-
renewing capabilities, too, improve quite significantly.

6. Functions of HRD

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Module - 1 Introduction to HRD

Primary Functions (TD, OD, CD)

1. Training and Development:

Training and Development focus on changing or improving the knowledge, skills and
attitudes of individuals. Training typically involves providing employees the knowledge and
skills needed to do a particular task or job. Developmental activities have a longer term
focus on preparing for future work responsibilities while also increasing the capacities of
employees to [perform their current jobs.
2. Organization Development:
It is defined as the process of enhancing the effectiveness of an organization and the
wellbeing of its members through planned interventions that apply behavioural science
concepts. The role of the HRD professional involved in an OD intervention is generally to

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function as a change agent. Facilitating change often requires consulting with and advising
line managers on strategies that can be used to effect the desired change.
3. Career Development:
It is “ongoing process by which individual’s progress through a series of stages, each of
which is characterized by a relatively unique set of issues, themes and tasks.” Career
development involves two distinct processes; career planning and career management.
Career planning involves activities performed by an individual, often with the assistance of
counsellors and others, to assess his or her skills and abilities in order to establish a realistic
career plan. Career management involves taking the necessary steps to achieve that plan,
and generally focuses more on what an organization can do to foster employee career
development.
Secondary Functions

1. Role Analysis and Development

 Over a period of time, roles to be played by a job holder may undergo a change, and due to
this reason role analysis becomes an important task of the organization.
 A role is a set of expectations people have about the behaviour of a person in particular
position. A position holder may perform three types of role in day to day life:
1. Expected role.
2. Perceived role.

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3. Enacted Role.
 Role analysis may be helpful in job analysis as it is based on job description and
specification which nothing different but role analysis.
2. Performance Appraisal
 Performance appraisal is an evaluation of the performance of an employee against the job
standards in terms of quantitative, qualitative and behavioral aspects at the workplace.
 A successful PA process involves explaining the job, communicating expectations, observing
and documenting behaviour and providing frequent informal feedback.
 “It is the systematic evaluation of the individual with respect to his or her performance on
the job and his or her potential for development”
3. Potential Appraisal
 The potential appraisal refers to the appraisal i.e. identification of the hidden talents and
skills of a person. The person might or might not be aware of them.
 Potential appraisal is a future – oriented appraisal whose main objective is to identify and
evaluate the potential of the employees to assume higher positions and responsibilities in
the organizational hierarchy.
4. Employee Counselling
 Employee face a variety of uncertainties, issues and problems both at the work and the
family. Counselling is one of the efficient interventions to find out work and family related
employee problems that affect the work negatively.
 Counselling is the process of helping other persons to find and act upon a solution to their
problems, anxieties, uncertainties and issues.
 Counselling is provided for work and personal issues such as: stress, change, conflict, career
planning, communication, trauma, depression, relationship issues, family problems,
anxiety, drug and alcohol problem, etc.
5. Employee Welfare and Quality of Work Life (QWL)
 The term employee welfare refers to various services, facilities and benefits offered to the
employees.
 QWL has been defined as “the quality of relationship between employees and the total
working environment”
 The purpose is to improve the living standard of workers and thereby improve their quality
of work life.

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 The type of benefits offered to an employee has been changing in the light of changing job
market trends, employee expectations, demands of the union and legislative requirements.
6. Human Resource Information System
 The Human Resource Information System (HRIS) is a process by which the organisation
collects, maintains and records information about people and jobs. This data is stored in a
data bank and it covers data on various aspects such as personal information, recruitment
details, appraisal details etc.

7. Significance/Importance of HRD

1. HRD Develops Competent HR

 HRD develops the skills and knowledge of individual, hence, it helps to provide competent
and efficient HR as per the job requirement. To develop employment's skill and
competencies, different training and development programs are launched.
2. HRD Creates Opportunity for Career Development
 HRD helps to grasp the career development opportunities through development of human
skills and knowledge. Career development consists of personal development efforts

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through a proper match between training and development opportunities with employee's
need.
3. Employ Commitment
 Trained and efficient employees are committed towards their jobs which is possible
through HRD. If employees are provided with proper training and development
opportunities, they will feel committed to the work and the organization.
4. Job Satisfaction
 When people in the organization are well oriented and developed, they show higher degree
of commitment in actual work place. This inspires them for better performance, which
ultimately leads to job satisfaction.
5. Change Management
 HRD facilitates planning, and management of change in an organization. It also manages
conflicts through improved labour management relation. It develops organizational health,
culture and environment which lead to change management.
6. Opportunities For Training And Development
 Trainings and development programs are tools of HRD. They provide opportunity for
employee's development by matching training needs with organizational requirement.
Moreover, HRD facilitates integrated growth of employees through training and
development activities.
7. Performance Improvement
 HRD develops necessary skills and abilities required to perform organizational activities. As
a result of which, employees can contribute for better performance in an organization. This
leads to greater organizational effectiveness.

8. Role of HRD Professionals in Organization

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HRD PROFESSIONALS STRATEGIC ADVISOR ROLE

• Consults with corporate strategic thinkers
• Helps to articulate goals and strategies
• Develops HR plans
• Develops strategic planning, education and training programmes
HR SYSTEMS DESIGNER/ DEVELOPER
• Assists HR manager in the design and development of HR systems
• Designs HR programmes
• Develops intervention strategies
ORGANIZATION CHANGE AGENT
• Develops more efficient work teams
• Improves quality management
• Implements intervention strategies
• Develops change reports
ORGANIZATION DESIGN CONSULTANT
• Designs work systems
• Develops effective alternative work designs
• Implements changed systems
LEARNING PROGRAM SPECIALIST
• Identifies needs of learners
• Develops and designs learning programs

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• Prepares learning material and learning aids

• Develops program objectives, lesson plans and strategies
INSTRUCTOR/ FACILITATOR
• Presents learning materials
• Leads and facilitates structured learning experiences
• Selects appropriate instructional methods and techniques
• Delivers instructions
INDIVIDUAL DEVELOPMENT AND CAREER COUNSELOR
• Assists individuals in career planning
• Develops individual assessments
• Facilitates career workshops
• Provides career guidance
PERFORMANCE CONSULTANT (COACH)
• Advises line management on appropriate interventions to improve individual and group
performance
• Provides intervention strategies
• Develops and provides coaching designs
• Implements coaching activities
RESEARCHER
• Assesses HRD practices and programs
• Determines HRD program effectiveness
• Develops requirements for changing HRD programs to address current and future
problems

9. Challenges of HRD

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Module - 1 Introduction to HRD

Competing in a global economy

 Many are introducing new technologies that require more educated and trained workers.
 Successful Organizations must hire employees with the knowledge to compete in an
increasingly sophisticated market.
 Competing in global market requires more that educating and training workers to meet
new challenges
 Successful organizations institute quality improvement processes & introduce change
efforts
 Workforce must learn to be culturally sensitive to communicate & conduct business among
different cultures
 Developing managers to be global leaders has been identified as a major challenge for
organization
Eliminating the Skills Gap
 To compete successfully in the global economy, companies should hire educated workers.
 But almost 30% of high school students fail to graduate, & employers must confront that
many young adults entering the workforce are unable to meet current job requirements
 This skill gap poses serious consequences
 It is impossible to learn many things as it would require reading and writing
 Many industrialized nations have made systematic changes in order to bridge the skill gap.
 Eg. Japan and Germany, have an educational system that do a better job of teaching
students the basic skills needed by most employers
Increasing workforce diversity

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 Workforce is becoming increasingly diverse including racial, ethnic and gender lines
 Effectively managing diversity has been identified as one of the distinguishing features of
organizations
 Diversity issues have several implications for HRD professionals
 Organizations need to address racial, ethnic & other prejudices that may persist as well as
cultural insensitivity & language differences
 Secondly with the increasing numbers of women in the workforce, organizations should
continue to provide developmental opportunities that will prepare women for
advancement into the sr. ranks and provide safeguards against sexual harassment.
 The aging of the workforce highlights the importance of creating HRD programs that
recognize & address the learning related needs of both younger and older workers
Need for Lifelong Individual Learning
 Given the rapid changing trends, it is certain that employees must continue the learning
process throughout their careers
 This need will compel the organizations to make an ongoing investment in HRD
 Eg. For semiskilled workers, it may involve more rudimentary skills training to help them
build their competencies
 To professional employees, this learning may mean taking advantage of continuing
education opportunities
 The challenge to HRD professional is to provide a full range of learning opportunities for all
kinds of employees
 Individual assessments can determine the deficiencies or gaps in employee’s performance
capabilities, while also pointing out their preferred learning styles.

10. HRD Process Model/HRD Framework/Systematic Approach to T & D

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A Framework for the HRD Process (“A DImE”)

HRD efforts should use the following four phases (or stages):
 Needs Assessment
 Design
 Implementation
 Evaluation

Phase 1: Conducting the Needs Assessment

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A training needs analysis is primarily conducted to determine where training is needed, what
needs to be taught, and who needs to be trained.
 Organization Analysis
 An examination of the environment, strategies, and resources of the
organization to determine where training emphasis should be placed.
 Task Analysis
 The process of determining what the content of a training program should be on
the basis of a study of the tasks and duties involved in the job.
 Person Analysis
 A determination of the specific individuals who need training.

Phase 2: Designing the Training Program

 Involves the sorting out of priorities, drawing up initial plans, costing them, and submitting
the draft plans for approval by top management.
 Entails the following activities:
 Defining the specific objectives of the programme.
 Developing an appropriate lesson plan.
 Developing the content of the program and acquiring the appropriate materials for
trainees to use.
 Selecting the most appropriate methods to conduct the program.
 On-the-Job Training - Job instruction training, job rotation, coaching,
mentoring;
 Off-the –Job training – Lectures, simulation, static media – handouts, books,
conference/discussion, DVD and video taps, case studies, role playing;
 Self-paced training - Programme instruction, computer based training, e-
learning, intranet.
 Determining who will deliver program – HRD professionals, managers, supervisors, outside
consultants.
 Scheduling the training program – program length, notifications, locations, etc.

Phase 3: Implementing the Training Program

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 Implementation involves the carrying out of the training programme according to the
approved plans.
o I.e. creating an environment that enhances learning and resolving arising problems.
 It is a collaborative work between training specialists and their line and staff managers.
 Effective communication between the parties involved is crucial and should be timely.

Phase 4: Evaluating the Training Program

 The evaluation of a HRD programme is part of the control process.
 It is the process of determining the effectiveness of the program.
 Evaluation provides information on participants’ reaction to the program which allows
managers to make better decisions with regard to:
o Whether to keep or change providers.
o Whether to offer the program again.
o The true costs.
o Whether it can be done in another way.
 Many different evaluation frameworks have been suggested, but, among the most widely
used approach is the one developed by Donald Kirkpatrick.

4.Results

3.Transfer

2.Learning

1.Reaction

Kirkpatrick's Model of Training Evaluation

 The framework suggests four levels of evaluation namely reaction, learning, job behavior
and results.
 Reaction - How employees feel about the course, the instructor, etc. (measured through
survey).

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 Learning – Whether learning has occurred (pre and post-training assessment).

 Transfer/Job behavior - Performance should improve (transfer of learning should occur on
the job).
 Results (return on investment) – What business results can be attributed to training
(savings generated, revenue, error rate, etc.).

Level Question being asked Measures

Reaction Did the trainees like the program, Questionnaires
the trainers, the facilities, they
course was useful?
Improvements?
Learning To what extent do trainees have Written tests,
greater knowledge or skills after performance Tests,
the training program than they did Graded simulation
before?
Transfer/Behaviour Are trainees behaving differently Performance appraisal by
on the job after training? Are they superior, client,
using what they have learned? subordinate
Results Is the organization or unit better Accidents, quality,
because of the training? productivity, turnover,
morale, costs, profits

11. Strategic HRD

 Strategy: the process by which the basic mission and objectives of the organisation are set,
and the process by which the organisation uses its resources to achieve those objectives.
 Strategic HRD is “concerned with the management of employee learning for the long term
keeping in mind the explicit corporate and business strategies”
 “Strategic HRD is development that operates within an overall strategic framework.
Business-led HRD is development that is responsive to the business needs of an
organisation”.

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 Strategic Management and HRD Strategic management intends to provide a competitively

superior fit with the external environment and enhance the long run performance of the
organization.
 HRD department should demonstrate its strategic capability through:
o Directly participating in organization’s strategic management process
o Providing education and training to line managers in the concepts and methods of
strategic management and planning
o Providing training to all employees that is aligned with the goals and strategies of
the organization

12. Pre-Placement and Placement

12.1. Pre-Placement
 Pre-placement may refer all the activities conducted for making candidate/student
employable and prepared prior to attending the job interview

PRE – PLACEMENT ACTIVITIES

 Communication, networking and relationship building with the potential recruiters.
 Invitation to potential recruiters to visit the Institute.
 Continuation of placement activities after the stipulated period, till all the students are
placed.
 General follow-up, joining formalities and other administrative activities.
 Grooming and training of the candidates for the placements so that their chances of
selection increase.
Grooming aspects like
 Facing Interviews.
 Facing Group Discussions.
 Professional Resume Writing.
 Cracking Aptitude Exams.
 Skill Development Sessions & Programs.
 Preparing Mock Exercises.
 Recruitment and Placement Sessions.

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 Arranging Seminars and Technical talks.

 Basic Grammar
 Improving the communication abilities of students and technical knowledge of student

The Objective of the Activity is

 To Bridge the gap that currently exists between the Industry and fresh professionals for
recruitment purposes.
 To minimize Stage fear.
 To build confidence among students.
 To make students know the Importance of Training & Placements.
 Make them prepared for further training session and placements.

12.1. Placement

 Placement is a process of assigning a specific job to each of the selected candidates.

 An actual posting of an employee to the specific job with rank & responsibilities attached to
it.
 It involves assigning a specific rank and responsibility to an individual.
 It implies matching the requirements of a job with the qualifications of the candidate’s
skills, abilities, potentials, capacities and their expectations towards the organization

SIGNIFICANCE OF PLACEMENT
 It improves employee morale.
 It helps in reducing employee turnover.
 It helps in reducing absenteeism.
 It helps in reducing accident rates.
 It avoids misfit between the candidate and the job.
 It helps the candidate to work as per the predetermined objectives of the organization.
PLACEMENT - BENEFITS
 Good results on the Job.
 Getting along with the people easily and proving themselves.

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 Keeping his spirits high and report for the duty regularly. •Learning the work and excel in
the job.
 Avoid mistakes and errors.

13. Question Bank

1. Elaborate on steps for HRD need assessment

2. Distinguish between Human Resource management and Human Resource Development
3. Define HRD. How do they affect development of an organisation? Explain with suitable
examples?
4. Bring out in detail the issues and challenges which the HRD professional has to face in the
present scenario?
5. State the significance of HRD
6. Explain the functions of HRD?
7. Illustrate “creativity and its Role in Management”.

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